The Portland daily press., 1887-01-31

ehah bhc corresponding month OF -. Inc
expenses are very large some months while
In others they are small.
Railroad Bills and the Rights OF Ml-
nority Stockholders.
To the Editor Of the Press:
The most important railroad bill that has
ever been presented 10 the Legislature Of
this State as affecting Maine interests Is now
pending at Augusta. Its provisions are so
sweeping that 1t Is important that the
public should understand what they mean.
We refer to the bill introduced by Mr.. Man
ley for the consolidation Of the Boston 4
Maine and other connecting roads. While
the bill does not say 50 in terms, it author
izes the purchase by the Boston q Maine Of
the Maine Central Railroad, tho Portland.
Saco q Portsmouth Railroad, the Portland &
Rochester Railroad, as we'll as the Eastern
Railroad, which Is named In the bill It
asks the Legislature Of the State Of Maine 10
authorize this purchase against the protest
Of the minority stockholders, which means
the owners Of that stock who are not In the
interest Of the Boston & Maine and Eastern
Railroads. As the matter now stands the
control Of the Maine Central Is in the hands
OF the Eastern railroad, whether legally or
Illegally. This, however, Is only by suffer-
ance as the Legislature has the undOubted
right to prohibit foreign corporation from
active control In its internal affairs. In
monopoly II is well for the people Of Maine
TO consider calmly whether they care 10
have the main railroad artery of this
state controlled by Boston cor
Poration as purchaser. 1t Is well for
them to consider further whether the
minority stockholders have any rights In
railroads which the majority are bound to
respect. In view Of the fact that the New
Jersey courts have lately decided in the
case OF Mills vs.. Central Railroad shat a
lease by the Reading Railroad Of the former
Tor the term OF 800 years was such funda-
mental change Of the charter" that the
Legislature could not authorize IL as against
the dissent Of minority stockholders, and
ordered a reargument Of the case Of Dow vs..
the Northern Railroad on this very
point involving the right OF the
Boston and Lowell Railroad TO lease
the former road, it would seem as II It was
asking good deal Of the Legislature Of the
State Of Maine TO attempt TO authorize such
transfer OF its principal railroad by vote
Of us directors and majority Of It's stock
holders, yet this Is what the bill coutem-
plates. II will be readily seen that the out
right sale Of railroad presents greater con
stltuti0nal difficulties than even lease. This
bill also asks the Legislature OF the State Of
Maine 70 authorize the Boston and Maine
railroad to purchase the stocks and bonds
Of any connecting corporations and from
time TO time Increase its own capital stock
TO such an amount as may be agreed upon by
itself and the selling corporation, and as
shall be approved BY the board Of railroad
commissioner Now irmay be we'll 70 in
quire in these days Of watered stock Of cor
az QAse Z paBS aBiSso S SsRig
Legislature Of the State OF Maine should
QlEe authority for nnliruIfnd Iaaua af
stock not based upon specific values as as
certained in legitimate way. And il may
be further inquired why the Legislature OF
the State of Maine should authorize the issue
Of preferred stock upon such terms Of en-
tire or partial preference as the corporation
may determine" If the state OF Maine
wishes TO sell out its railroads, and wishes to
DO It on such terms as to protect the inter-
ests OF all concerned, policy which, 10 say
the least. Is open TO serious criticism, why
should not the Legislature demand that the
absorbing corporation should submit to Il in
detail the scheme which 1t proposes to adopt
with reference to the adjustment Of values
and to the issue Of preferences to any parties
In interest
Is the Legislature Of the State Of Maine
prepared to grant to the Boston Il Maine
railroad ''all the rights, privileges, fran
chises and property heretofore held and en-
J0yed by the corporations whose roads, fran
chise and property IL intends 10 purchase In
this State" Does 1t realize what this thing
means2 Can il see the end from the begin
ming Of the possible growth and expansion
Of power which this Boston road viii prac-
tically possess in the State Of Maine under
legislative sanction? III there Is any one
thing that 1t Is for the interests Of the people
Of the State Of Maine to guard, 1t Is its main
thoroughfare Of railroad travel throughout
the length and breadth Of the State. II there
| Is any one thing that the Legislature should
| not do simply for the asking, Il Is the grant,
| ing OF such rights (even II II had power to do
4 xsrhf oh hoe f.I s.N
| couTts) as the Boston u Maine railroad asks
/ in this bill.
We cannot believe that such bill as this
i will pass unquestiOned and unopp0sed
| through the Legislature OF the State Of
Maine. We do not believe that the best IN
| terests Of our State will be promoted by
l granting any such extraordinary powers 10
| any one railroad, whose practical control Is
not secured to the people Of this state.
| The Maine Central railroad has done well
| enough as a separate corporation. The
| people Of the State l0f Maine are secure In
| their control Of that corporation as II Is.
| What will be the result If this bill Is passed,
1 only time can determine, but its provisions
| are so broad and sweeping that 1t may well
arrest the attention Of every thoughtful
| citizen.
There is also another bill just introduced
into the Legislature to authorize the incor-
i pOratiOn Of a company for aluni0n depot for
all railroads running into the city. An ex-
animation OF Its provisions win show that
| while large powers are conferred upon this
corporation ito purchase or otherwise OBJ
tain the right to occupy as much as may be
| convenient therefor Of the tracks and road
| bed Of any company, with the consent OF
/ that company" that 1t ccnfnes the use Of
| such union depot to such railroad companies
as may obtain consent Of this new corpora
4 tiOn for the enjoyment Of the privileges Of
the union depot In other words this new
/ corporation may or may hot consent to
railroads enjoying It's privileges. IL may
arbitrarily exclude some railroad. whose
policy it may not approve, or whose eompeti-
| tiOn may prove an annoyance, from enjoying
the privileges which this union scheme con-
templates. Apparently It cOntemplates
leasing its union depot and its extensive
rights and privileges TO some railroad, for
Section 8, provides for such lease Of the
whole CT any part OF its franchise and
property to any one or more Of the railroad
| companies whose tracks have entered or
may hereafter enter the city Of Portland" T"
And such railroad companies are authorized
to purchase, hold and dispose Of shares in
said capital stock or bonds or TO guarantee
to other purchasers or holders thereof the
payment Of the same.
Now what is the meaning Of this SCENE ?
| If the gentlemen interested really mean a
union depot for the interest OF ali roads
which now enter or may hereafter enter this
| city, and they do not contemplate selling out
on good terms the enterprise as soon as the
charter Is obtained, or later, why not say
| Nf@AHrNAI NANl ANtAn anu aoh tNt l4tNls~
ture OF the state to approve IL? Why Is any
right to sell out TO any railroads necessary?
II II IS to be union depot for the interests
Of all railroads, is II not safer for the public
that the franchise shall be held by an inde-
pendent corporation.
| These Inquiries are suggested by simple
reading OF these bills, and we believe that
the matter should be fully ventilated and
considered In all its bearings before legisla
tive sanction is given to schemes comforting
such extensive powers and privileges as are
contained in these bills.
| we have had too much legislation In the
dark relating to railroads in the past Why
should not notice be given BY railroads OF
intention 20 apply for legislation affecting
public and private interests, rs IS required
In case Of other corporations. Possibly pub
licity and discussion Is not what they seek.
However. that may be there can
be little question that it Is for
the interests Of the State at large that
chartered privileges which become a contract
not subject TO modification in any fundamen.
tai way BY the Legislature after vested rights
are involved, should not be granted unless
ata a VFtts